Why cash incentives aren't a good idea in education

Thursday, October 9, 2014 - 05:30 in Mathematics & Economics

If there is one iron law of economics it is this: people respond to incentives. Offer an "all you can eat" buffet and people eat a lot. Double the demerit points for speeding on a holiday weekend and fewer people speed. And if you make school funding contingent on achieving threshold numeracy and literacy test scores then those thresholds will likely be met.

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